Competitive Advantage Theory By Michael Porter

Click to edit Master subtitle style

Presented by rahul

4/17/12

Competitive Advantage and Competitiveness

Internal External

Competitive advantage resides

4/17/12

Competitive advantage resides in the locations in

inside

the

What is Competitiveness?

Competitiven ess depends on

4/17/12

the

Competitive Advantage Theory of Nations

Depends on the collective advantage of the nations firms

Over times, the relationship becomes reciprocal: competitive advantage held by the nation drives the development of new firms
4/17/12

Examples

4/17/12

Competitive Advantage Theory of Firms

Possession

of

sources

of

distinctive

competence relative to others.

E.g.
4/17/12

4/17/12

4/17/12

Southeast Asia

Economic coordination among neighboring countries can enhance competitiveness 4/17/12

4/17/12

How Do Nations Gain Competitive Advantage?

INNOVATION

4/17/12

Aggregate innovation capacity derived from collective innovation of firms

More innovative firms, stronger nations competitive advantage

Innovation promotes productivity; leads to efficient use of resources

Productivity key determinant of nations standard of living and national per-capita income

4/17/12

4/17/12